A lending company with national footprint that had been using psychometric testing for over a decade to screen job applicants for two key roles in the mortgage department wanted to know if the assessment solution was increasing the quality of hire and thereby adding to the bottom line.
After submitting multiple performance metrics to be considered when evaluating the effectiveness of each performance model, some tweaks were made to optimal ranges on several scales so that validity was increased to the very beneficial range meaning that the p-value for each correlation coefficient was below 0.05.
Return on investment was calculated with the annual cost of the solution, the estimated number of hires in the next twelve months, and a goal for hiring candidates with assessment job match scores at least a few percentage points above the validation study’s median score.